[Book Payment] Hye and Pat Signed a Contract Providing That

question 14

Multiple Choice

[Book Payment] Hye and Pat signed a contract providing that "Pat will furnish the correct used business law book for use in Hye's business law class; and on August 15, 2016, Hye promises to pay Pat $50 for the book." Hye took the book and planned to pay Pat. Meanwhile, Pat properly assigned the contract Hye had signed to Jack. When Hye went to class, however, she discovered that the book was the incorrect book. When Jack asked Hye for payment, Hye refused. Hye told Jack that the book was useless to her and that she was not paying either him or Pat anything for it. Jack told Hye that he had an enforceable assignment in the form of a negotiable instrument and that he could collect regardless of whether the book was useless. Hye did not believe him. Since she was trying to save money on books, she also agreed to buy Dante's U.S. history book for $40. She had an oral agreement with Dante that he would give her the book and that she would pay him in three days. This time Hye got the right book. Dante, in writing, properly assigned the right to the $40 payment to Aris. Aris asked Hye for the money. Hye admitted her agreement with Dante but told Aris that she was not going to pay him because he did not have a negotiable instrument. Hye also purchased a communications book from Sam promising in writing to give him, to his order, a DVD she had in return the next day.
-Which of the following is true regarding Jack's claim that he had a negotiable instrument and could collect from Hye?

• A) Jack is correct.
• B) The agreement is not negotiable because it does not contain words of negotiability.
• C) The agreement is not negotiable because the book was the wrong book.
• D) The agreement is not negotiable because Jack was not a party to the original contract.
• E) The agreement is not negotiable because the amount at issue is insufficient to create a negotiable instrument.

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